Benson Hill (BHIL) Q2 2024 earnings summary

Executive summary

• Transitioned to an asset-light business model, divesting soy processing facilities in Seymour, Indiana and Creston, Iowa, and Fresh Segment to focus on seed innovation and technology partnerships.

• Q2 2024 revenue increased 44% year-over-year to $33.8M, driven by higher grain sales and licensing, but six-month revenue declined 24% to $54.9M due to lower trading volumes.

• Net loss from continuing operations for Q2 2024 was $18.0M, a 51% improvement year-over-year; six-month net loss was $44.3M, relatively flat from prior year.

• Adjusted EBITDA loss for Q2 2024 improved to $12.4M from $15.2M in Q2 2023, reflecting cost reductions from the Liquidity Improvement Plan.

• Free cash flow loss for H1 2024 was $31.8M, about half of H1 2023's loss.

Financial highlights

• Q2 2024 revenue: $33.8M (+44% YoY); six-month revenue: $54.9M (–24% YoY).

• Q2 2024 net loss from continuing operations: $18.0M (vs. $36.5M prior year); six-month net loss: $44.3M (vs. $43.3M prior year).

• Q2 2024 Adjusted EBITDA loss: $12.4M (improved from $15.2M loss YoY); six-month Adjusted EBITDA loss: $19.5M (improved from $29.7M loss YoY).

• Cash and marketable securities at June 30, 2024: $29.5M; negative operating cash flow of $26.5M for six months.

• Free cash flow loss for H1 2024: $31.8M, down from $60.9M in H1 2023.

Outlook and guidance

• Existing cash and marketable securities expected to last through Q4 2024; additional capital required to fund operations beyond that.

• Management is pursuing strategic partnerships, licensing, and potential equity or debt financing to address liquidity needs.

• Focus remains on expanding seed technology licensing and direct sales, with new Ultra High Protein soybean varieties targeted for commercial release in 2025.

• Seed portfolio expansion to over 35 varieties by 2025; herbicide-tolerant soybeans to launch in 2026, a year ahead of schedule.

• Plans to expand animal feeding trials with academic and commercial partners over the next 9–12 months.